Current economy-class public transport fares maintained

JAKARTA (JP): Minister of Communications Giri Suseno Hadihardjono said on Wednesday the government would not increase economy class fares on public transportation given the damage the economic crisis had caused to people's purchasing power.

Giri said that since a large number of people were still suffering from the economic crisis, raising transportation fares would only add to people's burden.

"I think we do not need to increase economy class fares on public transportation because it would put a heavier burden on the people.

"However, the government will allow transportation operators to increase the fares of their executive and business class services," he announced.

Giri said executive class train fares could be raised by at least 15 percent.

Economy class fares on land and sea transportation are set by the government, while executive and business class fares are determined by transportation operators.

Giri said transportation companies could realize handsome profits from executive and business class services to subsidize their economy class service.

The House of Representatives approved on Tuesday transportation operators' plan to raise their fares by between 10 percent and 300 percent later this week.

The chairman of House Commission IV for public works, transportation, tourism, communications and public housing, Burhanuddin Napitupulu, said the House and the government had approved the increases in May, but the implementation of the new fares was delayed.

Burhanuddin said the House agreed fares for sea transportation could be raised 35 percent, train fares between 10 percent and 20 percent and bus fares between 100 percent and 300 percent.

"Our transportation operators are faring very poorly at the moment because they do not have enough money for the maintenance of their vehicles or ships. Transportation companies are often neglecting the safety of their passengers," Burhanuddin said.

The president of state shipping company PT Pelni, Isnoor Haryanto, said current fares only met 40 percent of the company's operating costs.

State railway company PT Kereta Api Indonesia president Eddy Haryoto said the company's economy class fare was currently between 25 percent and 40 percent below operating costs.

"The fares on our Jabotabek electric commuter train are 55 percent below operating costs. In 1998, our losses from operating economy trains and the Jabotabek train ran as high as Rp 223 billion," he said.

He said demand for executive class service was very high at the moment because the economic crisis had forced many businesspeople to shift from air travel to train.

Demand for executive class service reached 80 percent of capacity during weekdays and over 100 percent during the weekends, he said.

As part of its effort to meet the demand and offset the losses of its economy class service, the company will increase executive class capacity aboard its trains, Haryoto said.

The chairman of the Organization of Land Transportation Owners, G.T. Soerbakti, said most bus companies were currently verging on bankruptcy.

"Around 40 percent of bus operators have gone bankrupt. Only 50 percent of intercity buses still operate at present," he said. (gis)